Fintech firms to lure investors via IPOs
JAKARTA: The flourishing financial technology (fintech) industry in Indonesia is driving businesses to seek capital for expansion.
Indonesia Stock Exchange (IDX) has established an incubator unit in March to help fintech firms prepare for going public in order to rake in more capital.
Fintech, for its part, is expected to propel the development of the domestic stock market.
“IDX’s mobile trading, which is also a fintech [application] of sorts, has proven to increase our retail investors,” IDX Incubator head Irmawati Amran said on Monday. “Fintech companies that are more open to the public will attract people to invest in them, and that will help IDX garner more investors as well.”
Currently, IDX Incubator hosts 22 fintech firms operating in various fields, from crowdfunding to payment transfers, she added.
One of them, an online-to-offline e-commerce platform called Kioson, is set to become the first Indonesian start-up to list its shares before the end of the year.
IDX managers expect to see 1,500 start-ups or fintech companies go public by 2022. The stock exchange also targets one million new individual investors a year.
“Additionally, fintech companies may help people who have no bank account to invest in the stock market using the financial services they offer,” said Irmawati. — JP